An insurance company states that their office is able to process all death claim

Question

An insurance company states that their office is able to process all death claims within 3 working days. Recently there have been several complaints that it took longer than 3 days to process a claim. Top management wants to make sure that the situation is status quo and sets up a statistical test with a null hypothesis that the average time for processing a claim is 3 days, and an alternative hypothesis that the average time for processing a claim is greater than 3 day. After completing the statistical test, it is concluded that the average exceeds 3 days. However, it is eventually learned that the mean process time is really 3 days. What type of error occurred in the statistical test? Type I error Type III error Type Il error No error occurred in the statistical sense.

Explanation / Answer

Since the outcome says that the null hypothesis is false whereas it is actually true and equal to 3. Type 1 error exists

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